Risk Disclosure Statement of BitcoinBlink
Please read the following carefully to understand these risks.
The trading of cryptocurrencies involves significant risk. The User explicitly agrees to assume the risks set out in this Disclaimer as well as other risks not set out herein which are inherent to online trading and cryptocurrency speculation. There are many different types of risks associated with cryptocurrency and ICOs. Token sales are often complex.
Please be aware of the following specific risks before getting involved in any crypto or blockchain-based project found on our site or elsewhere.
Types of risks associated with cryptocurrency and ICOs:
Trading risk - There is an inherent risk that losses will occur as a result of buying, selling, or trading anything on the market.
Price fluctuation risk - Cryptocurrency prices can and do fluctuate significantly on any given day and due to such price fluctuations, the User’s cryptographic assets may be subject to large swings in value and may even become worthless.
Information risk - There may be errors or omissions on the reporting module or otherwise delay, inaccuracy, error, interruption or omissions in providing market quotations or other information provided on the Site on which the User might rely in making an Order.
Cyber-attack/hack risk - There may be third party or other attacks targeting computers/networks, spreading malware, running botnets, (D)DOS attacks, defacing websites, violations of network security, etc. which can material alter, intercept or otherwise interfere with the giving or execution of a an Order or the transfer of Funds to and from the User´s wallet. While it is less likely a blockchain will be hacked, there is a more significant potential for hacks on the system layers that exists above the blockchain layer. For example, applications such as wallets, browsers, websites, or software programs are all common targets for hackers. These hacks often lead to a substantial loss of funds for both the token issuer and the token purchaser. Please be aware that many blockchain projects are uninsured, which will likely result in the complete loss of your funds in the event you are the victim of a hack.
Counterparty Exchange risk - There may be errors, acts or omissions by the Counterparty Exchange or the Counterparty Exchange system may suffer a partial or complete failure, including, without limitation, a cyber-attack, such as phishing, pharming, etc., failure of hardware, software, human error, etc.
Financial or payment institution risk - Errors, acts or omissions of a financial or payment institution, including delays in sending or receiving funds from an Account.
Tax risk - Transactions the User completes using the Trading Platform may be subject to various taxes, such as VAT, sales tax or transfer taxes that are imposed and any profit or loss the User obtain from that place.
Account/Password appropriation risk - Unauthorized access by third parties of the User’s login credentials to gain access to the User’s Account, including through carelessness or forgetfulness of the User, or the third party obtaining control over another device or account used by the User in connection with any enhanced security measures enabled for their account.
Platform risk - There is no warranty or assurance that the development of the platform software or hardware will be uninterrupted or error-free, and there is an inherent risk that the software could contain defects, weaknesses, vulnerabilities, viruses or bugs causing a substantial loss.
Fraud Risk - The crypto space is still mostly unregulated. This lack of regulation allows for unlawful projects to be launched in a quest to raise funds for a project which was never intended to deliver on any of its promises. It is essential to conduct thorough due diligence on all crypto projects.
Mining Attacks Risk - Early-stage blockchain projects come with increased levels of risk. Blockchain protocols often use algorithms which help protect the network. While these algorithms and others have proven to be entirely secure, there is a risk with early-stage projects which don’t have a balanced distribution of miners. In these instances, a project could find themselves with miners who are bad actors and could engage in activities, such as majority mining power attacks, that would reduce the value of the platform or network to zero.
Extreme Volatility Risk - Cryptocurrencies have traditionally been incredibly volatile assets. This volatility has many implications for the ICO and Token Sale industry. The value of a project’s internal token may or may not lead to an increase or decreases in project progress as well as public interest in the project. Similarly, the price of the tokens used as the base currency (for fundraising) could also depreciate, meaning the token issuer may not have the funds to complete the project.
Accidental Loss of Tokens Risk - It is possible to lose the entire balance of your token based on many different factors. For example, if you fail to follow the exact ICO or Token Sale instructions, including providing a correct and compatible receiving address, you may lose your tokens. You may also lose your tokens if you fail to write down your password, private key or passphrase (depending on the rules of each token sale). Generally, failing to follow stringent guidelines will result in the total loss of all tokens. In the majority of these cases, the tokens will be forever unrecoverable.
Regulatory Risk - There is a risk that a crypto project either failed to adhere to regulatory requirements for their specific use case and technology, or new laws or regulation may conflict with their current project functioning. It’s also important to realize that regulatory standards and laws change significantly between jurisdictions. It’s essential to study, understand, and continually update yourself on the rapidly evolving regulatory landscape surrounding blockchain technology and ICOs in your jurisdiction.